BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 927|
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                                   THIRD READING 


          Bill No:  SB 927
          Author:   Anderson (R) 
          Amended:  3/31/16  
          Vote:     27 - Urgency

           SENATE GOVERNANCE & FIN. COMMITTEE:  7-0, 3/30/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,  
            Pavley

           SENATE ELECTIONS & C.A. COMMITTEE:  5-0, 4/19/16
           AYES:  Allen, Anderson, Hancock, Hertzberg, Liu

           SUBJECT:   Public Utility District Act:  election of directors


          SOURCE:    Author


          DIGEST:  This bill allows the Fallbrook Public Utility  
          District's board members to be elected by subdistricts, rather  
          than at-large.


          ANALYSIS:  Existing law provides that members of most local  
          governments' legislative bodies are elected using one of three  
          methods:


          1)An "at-large" election allows a voter residing anywhere within  
            the local government's boundaries to vote for any candidate  
            for the local government's governing board.  










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          2)A "by district" election allows a voter to vote only for a  
            candidate who runs and resides in the same geographical  
            district in which the voter resides. 


          3)A "from district" election allows a voter residing anywhere  
            within a local government's boundaries to vote for any  
            candidate for a local government's governing board, but each  
            candidate must run in the geographical district where he or  
            she resides.


          This bill:


          1)Allows the candidates for director of any public utility  
            district (PUD) that is wholly or partially within San Diego  
            County to be elected by subdistricts either:


             a)   Upon adoption of a resolution or ordinance to that  
               effect by the board of directors of the district, subject  
               to approval of the board of supervisors, or 


             b)   As a part of a change of organization or a  
               reorganization conducted pursuant to specified provisions  
               of state law. 


          2)Directs that a resolution or ordinance that divides a district  
            into subdistricts adopted by the district's board of directors  
            must describe the boundaries of the subdistricts so that the  
            subdistricts shall be nearly equal in population.


          3)Defines "by subdistricts" as the election of members of the  
            board of directors by voters of the subdistrict alone.


          Background


          The Public Utility District Act governs California's 53 PUDs.   







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          The Act empowers a PUD to acquire, construct, own, operate,  
          control, or use works for supplying its inhabitants with light,  
          water, power, heat, transportation, telephone service, or other  
          means of communication, or means for disposing of garbage,  
          sewage, or refuse.  The Act requires that the members of the  
          board of directors of a PUD that lies entirely within one county  
          must be elected at-large. The Legislature has created two  
          exceptions to this at-large election requirement:


          1)The Georgetown Divide PUD (El Dorado County) can provide for  
            electing the district's directors by wards (AB 1410, N.  
            Waters, Chapter 63, Statutes of 1980).  Its board is currently  
            elected at-large.


          2)The board of directors of a PUD located in Placer County can  
            provide for electing the district's directors by wards or from  
            wards (SB 1393, Senate Local Government Committee, Chapter  
            939, Statutes of 1994).  The North Tahoe PUD's board is  
            currently elected by-district. 


          The Fallbrook PUD (FPUD) provides retail water, sewer, and  
          recycled water services to approximately 35,000 people residing  
          within its boundaries in northern San Diego County.  A lawsuit  
          filed against the district last year in San Diego County  
          Superior Court alleged that the district's at-large board  
          elections violated the California Voting Rights Act by diluting  
          the voting strength of Latino voters, thereby impairing their  
          ability to participate meaningfully in the political process and  
          to elect candidates of their choice (Juan Atilano, Carmen  
          Cardoso, Jesus Hernandez, Jesus Hernandez Jr., and Jose Huerta  
          v. Fallbrook Public Utility District).  To avoid potentially  
          lengthy and costly litigation, the parties to the lawsuit  
          negotiated a settlement to resolve the claims against FPUD.  The  
          settlement agreement, which is enforced by a recent court order,  
          requires FPUD to change from an at-large method of election to a  
          by-district method of election.  FPUD has already begun  
          implementing the changes required by the settlement. 


          In light of the by-district election requirement in the recent  
          court order enforcing the settlement agreement, FPUD officials  







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          want the Legislature to grant the district an exemption from the  
          Public Utility District Act's at-large election requirement.


          Comments


          Purpose of the bill.  Despite the fact that a recent court order  
          enforcing a settlement agreement requires FPUD to use a  
          by-district method for electing members of its governing board,  
          state law still appears to require the district to elect its  
          board members at-large.  To avoid any possible confusion about  
          FPUD's authority to use the by-district election method, this  
          bill enacts an exemption to the statutory at-large election  
          requirement that is similar to exemptions state law grants to  
          two other public utility districts.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified4/21/16)


          Fallbrook Public Utility District
          Association of California Water Agencies
          California Special Districts Association
          Mexican American Legal Defense and Educational Fund
          San Diego County Water Authority


          OPPOSITION:   (Verified4/21/16)


          None received



          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
          4/22/16 12:32:06


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